13th Jul 2020 11:26
(Alliance News) - Barclays PLC on Monday said its common equity tier 1 ratio has climbed ahead of market expectations, helped by regulatory changes and by risk weighted assets being lower than first thought.
The UK bank said its CET1 ratio stood at about 14% at the end of June, not only an improvement from 13.1% at the end of March but also ahead of market forecasts.
"Regulatory changes contributing to the improvement in the capital ratio as at the end of the second quarter of 2020 include amendments to the capital requirements regulation that were implemented in June 2020, including transitional relief relating to IFRS9 impairment and implementation of revised rules for the calculation of the prudential valuation adjustment to capital," Barclays explained.
"In addition, risk weighted assets as at June 30 are expected to be lower than previously anticipated."
Looking ahead however, Barclays warned of "headwinds" to its CET1 ratio, amid reduced transitional relief on IFRS9 impairment and "procyclical effects" on risk-weighted assets.
Barclays will issue a more detailed update in its interim results, slated for July 29.
The report is "expected to reflect the challenging income and impairment conditions for the consumer and corporate businesses, and continuing strength of markets income", Barclays said.
The FTSE 100 stock was 0.2% lower at 118.00 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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